Following its delayed but long-anticipated battery guidance pertaining to federal EV tax credits, the US Treasury Department’s requirements are about to kick in, and it’s not great news for all prospective EV buyers. Beginning tomorrow, EVs from major automakers like BMW and Nissan will no longer qualify for any tax credits at the federal level, while Tesla’s base Model 3 is cut in half.
Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates.
According to the US government’s Fuel Economy website, the American automaker’s R1T pickup and R1S purchased after April 18, 2023, now qualify for up to $3,750 in potential tax credits.
Update April 19: As alluded to earlier this week, Volkswagen Group has submitted the necessary paperwork with the US Government and the following 2023 ID.4 models now qualify for up to $7,500 in credits:
ID.4 and ID.4 S
ID.4 Pro, ID.4 Pro S, ID.4 Pro S Plus
AWD ID.4 Pro, AWD ID.4 Pro S, AWD ID.4 Pro S Plus
Following a nearly four-month delay, the US Treasury Department shared its guidance earlier this month, outlining what parameters automakers must comply with in terms of battery component assembly and respective materials in order for their EVs to qualify for federal tax credits.
Beginning April 18, EV manufacturers must ensure that battery-critical minerals used in vehicles assembled in North America are also “extracted or processed in the US or any country with which the US has a free trade agreement” or recycled in North America. Like the EV themselves, battery components must also be “manufactured or assembled in North America.”
Each of the two newly enforced qualifying factors account for $3,750 in EV tax credits, combining for the total $7,500. Even before the battery guidance was revealed, several global automakers began scrambling to erect or repurpose US manufacturing facilities to enable local EV production.
Some of those automakers (like Rivian, for instance) are already American-made, while others, like Volkswagen, have had local plants for years. In that sense, we thought it was safe to assume those automaker’s EVs would continue to qualify for federal tax credits.
However, according to the US government, a slew of previously qualifying EVs are about to be cut (at least for now) because of the battery guidance going into effect. Here’s the latest.
Battery guidance puts huge hit on EV tax credits in US
We’ve been aware of the battery guidance from the US Treasury for a few weeks now and have known those requirements will take effect on April 18. However, automakers aren’t generally super open about how and where they source all their materials, so it remained unclear which EVs may or may not still qualify for the tax credit.
Some automakers like GM, for example, have come out publicly and shared that all their EVs will still qualify for the full $7,500 EV tax credit. Others have remained quiet, leaving us guessing. Today, the government has made things a lot clearer… and more disheartening for those consumers looking to purchase a new Rivian or Nissan LEAF with hopes of getting a $7,500 kickback.
This morning, the US Treasury stated the following models will lose their EV tax credit status beginning tomorrow. Here’s the latest wave of EVs being cut:
Audi (VW Group)
BMW
Genesis (Hyundai Motor Group)
Volvo
Additionally, the US government states that the Standard Range RWD Tesla Model 3 will now only qualify for up to $3,750 in federal EV tax credits. Other trims of the Model 3 and the Tesla Model Y will still qualify for up to the full $7,500 EV tax credit.
Now that they have been cut, that isn’t to say those EVs can’t once again qualify for federal EV tax credits. Volkswagen Group has already come out and said it is “fairly optimistic” that the ID.4 will qualify. The automaker is merely awaiting the proper documentation from a supplier.
Additional automakers like Stellantis expect their electric models to qualify for at least half of the tax credit, and the Treasury has confirmed as much.
Hyundai Motor Group expressed commitment to long term EV plans as it is currently constructing a new US production facility to eventually produce vehicles that will once again qualify for EV tax credits.
This story is ongoing and the list of qualifying EVs should continue to evolve in the coming weeks as the battery guidance kicks in and automakers submit the necessary paperwork (or not) to try and requalify. As always, we will continue to keep this list up to date for you.
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If Mayor Adams gets his way, New York City will institute a new speed limit on electric bicycles, reducing the cap to just 15 mph (24.1 km/h) from the previous e-bike speed limit of 25 mph (40 km/h). It’s a move that is ostensibly meant to protect New Yorkers, but which experts have said will actually result in risking more lives.
It’s a prime example of doing more harm than good, says Michael Replogle, the former policy director for NYC’s Department of Transportation and an internationally recognized expert in the field of sustainable transportation.
The issue is that the reduced speed limit means that slower e-bikes will constantly come into conflict with higher speed traffic, routinely being passed by multi-ton cars and SUVs.
Despite the 25 mph (40 km/h) city-wide speed limit for cars in NYC, the de facto speed limit is really 35 mph (56 km/h), which is the speed at which traffic cameras begin to record infractions and issue citations.
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Previously, electric bicycles were permitted to travel at speeds up to 25 mph, helping them more closely match the speed of vehicular traffic and thus reduce the conflict rate between vulnerable cyclists and dangerously large and heavy vehicles. “I can tell you it feels much safer as a cyclist if you’re going close to the speed of the traffic than if you’re going half the speed of traffic,” Replogle explained.
“I strongly oppose the proposed rule to limit e-bikes to a 15 mph speed limit. It is an ill-considered idea to improve safety which will be counterproductive,” Replogle continued, according to NYC Streetsblog. “It is also likely to put New Yorkers at risk of a criminal record or entrapment in President Trump’s immigration dragnet.”
A large portion of the e-bike riders in NYC are immigrants who work as food delivery riders or bike couriers who are depended upon by thousands of New Yorkers every day.
“It’s a war on bikes, it’s a war on immigrants, and it undermines traffic safety,” Replogle added. “I think it’s Adams basically trying to mount a populist assault on cycling.”
Despite e-bike accidents being cited as the supposed reason for the city’s reduced bike speed limit, cars account for virtually all of NYC’s traffic-related injuries and deaths.
Electrek’s Take
I know this might come as a shock, but the experts here are correct and the politicians are wrong.
Reducing e-bike speed limits won’t make things safer; it’s just more likely to get people killed due to increased car crashes with cyclists.
This whole issue came about because a few pearl-clutching New Yorkers with money and power saw an e-bike whizz past them closer than they were comfortable with, and wanted it to stop. This has nothing to do with protecting people’s lives. If that were the primary goal, then they’d limit cars to 15 mph, not e-bikes. Only one of the two is a highly effective killing machine, and I’ll give you a hint – it’s not the one that weighs as much as a small child.
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The sun has set on a frantic day of scrutineering at this year’s Electrek Formula Sun Grand Prix (FSGP), as teams scramble to qualify for a spot on the starting line tomorrow morning. Electrek FSGP 2025 is shaping up to be one of the event’s most attended ever, thanks to a strong showing of first-time and returning schools. But that also means new and unproven vehicles on the track.
Today, I walked through a couple of bays and talked with a few of the teams able to spare a minute; almost all of them were debuting completely new cars that were years in the making. Building a solar car is no easy feat. It’s not just the engineering and technical know-how that’s often a hurdle for them; it’s more often monetary. However, one of the things that makes this event so special is the camaraderie and collaboration that happen behind the scenes.
Northwestern University is back with a completely new car this season, its eighth since the team’s original inception in 1997 during the GM Sunrayce days. Its motor controller, which is responsible for managing the flow of power from the batteries to the motor, was given to them by the Stanford team. Stanford had extras and could spare one for Northwestern, which needed a replacement. It doesn’t stop there. Two members of the Northwestern team (Shannon and Fiona) told me four other teams helped them with a serious tire replacement around 1 a.m. Wednesday morning, saving them from missing important parts of scrutineering.
This is also an exciting year for the West Virginia team, which is celebrating its 35th anniversary as a solar car team, making them one of the oldest teams on the track. With age comes wisdom though: WV is competing again this year with its single-occupant vehicle, Sunseeker. The team ran into issues after last year’s American Solar Challenge (ASC) cross-country event when the vehicle’s control arm, an important part of the suspension that connects the wheels to the chassis, broke. They tell me this year they’re back with a completely redesigned control arm made of both aluminum and steel. Thank you, Hayley, John, and Izzy, for taking the time to talk.
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We’re also seeing new builds this year from the University of Florida, the University of Puerto Rico, NC State, and UC Irvine. Believe it or not, the latter team has never competed in an American Solar Challenge/Formula Sun Grand Prix. This is their first year. UC Irvine doesn’t expect to be on the starting line tomorrow but hopes to be on the track soon after.
University of Puerto RicoUniversity of California Irvine
On the other hand, we have tried-and-proven cars like my personal favorite, Polytechnique Montréal’s Esteban, which undergoes minor improvements each year. I talked a little bit with this team today, and they told me the car’s motor was dropped, disassembled, and cleaned in preparation for the event. Polytechnique Montréal has passed scrutineering and will appear on the starting line tomorrow.
Polytechnique Montréal
Teams that haven’t wrapped up scrutineering in the last three days can still complete it, though doing so will eat into time on track.
You can learn more about the different classes and the specific rules here.
I’ll continue to post more updates as the event continues!
2025 Electrek FSGP schedule
The 2025 Electrek FSGP will again be held at the National Corvette Museum Motorsports Park in Bowling Green, Kentucky, which, interestingly enough, General Motors occasionally uses for Corvette testing and development. A bit of a full-circle moment being so close to the company that started it all.
The event is open to the public and FREE to attend. Come see the solar car race up close!
Racing starts on July 3 from 10am to 6pm CT and continues through July 5 from 9am to 5pm CT.
Featured image via Cora Kennedy for Electrek FSGP/ASC.
Note: The Formula Sun Grand Prix is not in any way associated or affiliated with the Formula 1 companies, FORMULA 1 racing, or the FIA Formula One World Championship.
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Tesla’s Q2 results are in, and they are way, way down from Q2 of 2024. At the same time, Nissan seems to be in serious trouble and the first-ever all-electric Dodge muscle car is getting recalled because its dumb engine noises are the wrong kind of dumb engine noises. All this and more on today’s deeply troubled episode of Quick Charge!
We’ve also got an awesome article from Micah Toll about a hitherto unexplored genre of electric lawn equipment, a $440 million mining equipment deal, and a list of incompetent, corrupt, and stupid politicians who voted away their constituents’ futures to line their pockets.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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